| CIM FINANCE. INTEGRATED REPORT 2022 108 EXPLANATORY NOTES 30 SEPTEMBER 2022 2. A CCOUNTING POLICIES (CONT’D) 2.6 Changes in accounting policies and disclosures (Cont’d) IFRS 16 Leases COVID-19 related rent concessions: Effective June 1, 2020, further to IFRS 16 amendment to provide a practical expedient for lessees accounting for rent concessions that arise as a direct consequence of the COVID-19 pandemic. The amendment provides lessees with an exemption fromassessing whether a COVID-19-related rent concession is a leasemodification. The amendments have no impact on the Company’s financial statements. Standards, Amendments to published Standards and Interpretations issued but not yet effective Certain standards, amendments to published standards and interpretations have been issued that are mandatory for accounting periods beginning on or after January 1, 2022 or later periods, but which the Company has not early adopted. At the reporting date of these financial statements, the following were in issue but not yet effective: Effective date January 1, 2022 IFRS 1 First-time Adoption of International Financial Reporting Standards Annual Improvements to IFRS Standards 2018-2020: Extension of an optional exemption permitting a subsidiary that becomes a first-time adopter after its parent tomeasure cumulative translation differences using the amounts reported by its parent, based on the parent’s date of transition to IFRSs. A similar election is available to an associate or joint venture. IFRS 3 Business Combinations Reference to the Conceptual Framework: The amendment updates a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. IFRS 9 Financial Instruments Annual Improvements to IFRS Standards 2018-2020: The amendment clarifies which fees an entity includes when it applies the ’10 per cent’ test in assessing whether to derecognise a financial liability. IAS 16 Property, Plant and Equipment Property, Plant and Equipment: Proceeds before Intended Use: The amendments prohibit an entity from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in themanner intended bymanagement. Instead, an entity recognises the proceeds from selling such items, and the cost of producing those items, in profit or loss. IAS 37 Provisions, Contingent Liabilities and Contingent Assets Onerous Contracts-Cost of Fulfilling a Contract: The amendments specifywhich costs should be included in an entity’s assessment whether a contract will be loss-making. IAS 41 Agriculture Annual Improvements to IFRS Standards 2018-2020: The amendment removes the requirement for entities to exclude taxation cash flows when measuring the fair value of a biological asset using a present value technique. Effective date January 1, 2023 IFRS 17 Insurance contracts IFRS 17 creates one accountingmodel for all insurance contracts in all jurisdictions that apply IFRS. IFRS 17 requires an entity tomeasure insurance contracts using updated estimates and assumptions that reflect the timing of cash flows and take into account any uncertainty relating to insurance contracts. The financial statements of an entity will reflect the time value of money in estimated payments required to settle incurred claims. Insurance contracts are required to be measured based only on the obligations created by the contracts. An entity will be required to recognise profits as an insurance service is delivered, rather than on receipt of premiums. This standard replaces IFRS 4-Insurance Contracts.
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